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Full text of "Shipping Practice"

FREIGHT                                        59

If, however, goods have been wrongly stowed, and are
overcarried, the mistake is the error of the carrier and no
back freight becomes chargeable.

Lump sum freight. An agreed amount for the carriage
of the goods, not based upon quantity. This freight is pay-
able in full irrespective of the quantity delivered.

For example: a shipper wishes a cargo of anything up to
4,000 tons to be carried to a certain port, and agrees to pay
the carrier the sum of 3,000 for the carriage. He may,
therefore, ship either 400 or 4,000 tons and the freight paid
still remains at the lump sum figure of 3,000.

In order to earn this lump sum freight the shipowner
must carry and deliver at least some of the cargo.

In the case of cargo short delivered, the receiver is only
entitled to claim for the value of the cargo, and not for the
freight unearned. Lump sum freight is payable irrespective
of quantity delivered.

Freight of this nature is advantageous to a shipper who
is uncertain of the quantity of cargo to be carried, as by
making such an agreement, he can obtain a cheaper rate
than if he shipped under a charter fixture.

Advance freight. Perhaps the most important type of
freight, being payable in advance and recoverable only if
the shipowner deliberately contributes to the loss. If the
ship should sink or be a total loss on her outward trip or
cargo be lost by an accepted peril, the cargo owner is un-
able to obtain the return of his freight if paid in advance.

It is a matter to be settled by the bill of lading terms
whether the freight paid on delivery of bills of lading con-
stitutes advance freight or not. This can only be settled by
reference to the clause relating to it in the bill of lading.

When charter-parties are fixed and a proportion of freight
is payable in advance, this may be either advance freight,
or payment on account of disbursements. If it is advance
freight then in the case of a loss it is never returnable, but
where it can be proved by the terms oi the contract only to
have been a payment on account for disbursements and
other charges, then it does not come under this heading.